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Model Answers to the Conveyancing Examination

September 2014
Part 1

Self-Study Deeds Course

Question 1 - Model answer 1 [20]


1.1 Prepared by me

CONVEYANCER
Erinda Frantzen

Form E

Deed of Transfer

Be it hereby made known

That Erinda Frantzen appeared before me the Registrar of Deeds at Bloemfontein,


she, the said appearer, being duly authorised thereto by a power of attorney
granted to her by
1 ANDRE VILJOEN
Identity number 521201 5689 08 2
married in community of property to Sally Viljoen2
and
2 NAAS BOTHA
Identity number 500508 5553 08 7
married in community of property to Karen Botha

1
Also see September 2009 (Part 1), question 2 for 30 marks. A similar
question was also asked in May 2002 (Part 1), question 4.
2
Consents in terms of section 15(2) of the Matrimonial Property Act by Sally
Viljoen and Karen Botha must be lodged together with the transfer.

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2

and
3 YVETTE SMITH (FORMERLY COETZEE)
Identity number 571219 0359 08 2
unmarried
carrying on business in partnership as Viljoen & Associates 3

dated the 10th of September 2014 and signed at Bloemfontein

AND the said appearer declared that the aforementioned Andre Viljoen has, in
terms of an agreement dated 15 August 2014 retired from the partnership and that
in terms of the said agreement his share in the undermentioned property has been
taken over by the remaining partners;

AND that she in her capacity aforesaid, did, by these presents, cede and transfer to
and on behalf of
1 NAAS BOTHA
Identity number 500508 5553 08 7
married in community of property to Karen Botha
and
2 YVETTE SMITH
Identity number
unmarried
carrying on business in partnership as Botha & Smith Interior Decorators

their heirs, executors, administrators or assigns, in full and free property

ERF 1114 WELKOM


District Bloemfontein, Province Free State

Measuring 2 000 (two thousand) square metres

First transferred and still held by Deed of Transfer T4276/1988 with diagram SG No
323/1985 annexed thereto4 [13]

3
See Regulation 34(3). Each partner of the original firm must give transfer to
the new partnership. The whole property must be transferred to the new
partnership and not only the share of the retiring partner.
4
As the extending clause in the existing title deed follows the wording of
prescribed Form TT, Form UU (suitably adapted) must be used for the

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1.2 The power of attorney must be signed by each partner of the former
partnership, i.e. by Andre Viljoen, Naas Botha and Yvette Smith. [1]
(Consents by Sally Viljoen and Karen Botha in terms of section 15(2) of the
Matrimonial Property Act must also be lodged.)

1.3 In such an instance an application, signed by all three partners of the former
partnership must be lodged in the deeds registry for an endorsement in
terms of section 24bis(2) of the Deeds Registries Act on the existing title
deed T4276/1988 to the effect that such land vests in the individual partners
and thereupon such partners shall be entitled to separately deal therewith as
if they had taken formal transfer into their names of their shares in such land.
[3]

1.4 The individual partners can be substituted as mortgagors in the bond in the
place of the former partnership in terms of section 24bis(3). The mortgagee
must consent to the substitution of the individual partners as mortgagors
under the bond and the individual partners must apply to be substituted,
jointly and severally under the bond and waive the exception de duobus vel
pluribus reis debendi. [3]

Question 2 - Model answer 5 [8]


Subject to the following conditions:

1 Subject to a servitude area, measuring 25 (twenty five) square metres, for


the purpose of erecting and using as a pump house, which servitude area is
indicated by the figure abcd on subdivisional diagram S.G. number
800/2014, together the right to draw water from the adjacent dam on the
servient tenement hereinmentioned and together with the right of access
over the servient tenement for maintenance purposes in favour of -
THE REMAINING EXTENT OF THE FARM MOOINOOI 123
Registration Division J.R., Province of Gauteng

Measuring 300,1457 (three hundred comma one four five seven)


hectares

Held by Deed of Transfer T75458/2000

subsequent transfer.
5
See Example 6C in the example bundle of your notes. Similar questions were
asked in May 2012 (Part 1), question 1 and May 2002 (Part 1), question 6.

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2 Subject to a servitude of aqueduct, 2 metres wide, the centre line of which
servitude is indicated by the line efghj on subdivisional diagram S.G. number
800/2014 together with the right of access over the servient tenement for
maintenance purposes in favour of -
THE REMAINING EXTENT OF THE FARM MOOINOOI 123
Registration Division J.R., Province of Gauteng
Measuring 300,1457 (three hundred comma one four five seven)
hectares

Held by Deed of Transfer T75452/2000

Question 3 - Model answer 6 [12]

3.1 “... do hereby consent to the consolidation of Erven 15 and 16 Zastron,


Province of KwaZulu Natal, to be known as:
ERF 20 ZASTRON 7
Registration Division E.T., Province of KwaZulu Natal
Measuring: 2 500 (two thousand five hundred) square metres” 8 [2]

3.2 “... do hereby consent to the registration of a servitude to convey electricity


over the property mortgaged under this bond, in favour of ESKOM as will
more fully appear from attached Notarial Deed of Servitude executed before
the notary Erinda Frantzen on 16 February 1995 with diagram annexed
thereto and initialled for identification purposes, free from the bond.9“ [2]

3.3 “... do hereby consent to:

1 the opening of Township Register in respect of the property mortgaged


under the said bond and to be known as the Morning Glory Township;
and

6
See Example 14M (page 4) of the example bundle and May 2006 (Part 1),
question 4 and May 2001 (Part 1), question 9
7
You may use a property description applicable in the area where you
practice.
8
Form MM to the Deeds Registries Act must be used for all the consents in
this question.
9
Section 65(3) requires that the mortgagee consents to the registration of the
servitude, free from the bond.

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2 the registration of the general plan S.G. No 9945/2014.” 10 [2]

3.4
3.4.1 “... do hereby consent for the release of the following property from the
operation of the said bond, namely:
PORTION 8 OF THE FARM WATERFALL 123
Registration Division J.R., Province of Gauteng
Measuring: 250,0000 (two hundred and fifty comma nil nil nil nil)
Hectares”

3.4.2 “... do hereby consent to the issue of a Certificate of Registered Title in terms
of Section 43 of the Deeds Registries Act No 47 of 1937 in respect of the
following property, namely:
PORTION 3 OF THE FARM WATERFALL 123
Registration Division J.R., Province of Gauteng
Measuring: 150,1234 (one hundred and fifty comma one two three
four) hectares” [4]

3.5 “... do hereby consent to:

1 The opening of Sectional Title register in respect of the land


mortgaged under the abovementioned bond;

2 The registration of the sectional plan in respect of the scheme known


as COMORES and situate at
ERF 51 CAPE TOWN
situated in the City of Cape Town, Division Cape, Province Western
Cape
Measuring: 4 500 (four thousand five hundred) square metres
Held by Deed of Transfer T776/1960

3 The endorsement of the said mortgage bond to the effect that it


attaches to the sections and common property shown on the sectional
plan.11 [2]

10
Consent must also be given to the registration of the general plan, as the
application for the opening of a township register includes an application of
the registration of the general plan.
11
Section 11(3)(d) specifically prescribes that consent for this must be given by
the mortgagee.

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Question 4 - Model answer 12 [10]
Prepared by me

CONVEYANCER
Gabriël Jacobus le Roux

Application in terms of Section 25(3)


of the Deeds Registries Act 47 of 1937

I, the undersigned
BRENDA GREEN (BORN BROWN)
Identity number: 921201 4003 08 2
married in community of property to Werner Green, with the exclusion of the
community of property in respect of the undermentioned property as a result
of the stipulations in the will of the late Joe Brown dated 1 May 1993

do hereby apply in terms of section 25(3) of the Deeds Registries Act 47 of 1937 to
the Registrar of Deeds at Pretoria, for the endorsement of the Deed of Transfer
T1234/2009 under which is held
PORTION 1 OF THE FARM KAALLAAGTE 31
Registration Division IP, Province of Gauteng
measuring 3 000,0000 (three thousand comma nil nil nil nil) hectares

Whereas I am the only child born of the marriage between Chris Brown and
Michelle Brown and is now ascertained following the death of the said Chris Brown
on 1 July 2012

Now therefore I hereby apply for an endorsement to be made on the above title
deed to the effect that the name of the said Brenda Green be contained in the
title deed and that I shall be entitled to deal with the said property as if I had
acquired the said property by means of formal transfer, subject to the
exclusion of the community of property as more fully set out in the will of the
late Joe Brown dated 1 May 1993.

Finally I declare the value of the property to be R2 000 000,00 (two million rand).

Signed at Pretoria this 10th day of September 2014.

Brenda Green

12
Similar questions have been asked in July 2004 (Part 1) question 3 for 15
marks and in May 2002 (Part 1) question 8 for 11 marks.

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Question 5 - Model answer [10]
5.1 Conveyancer's Certificate
by virtue of section 15B(3)(a) of the Sectional Titles Act 95 of 1986

I, the undersigned
Gabriel Jacobus le Roux
a conveyancer practising as such in Pretoria, hereby certify that in respect of the
transfer from
ERNIE ELS
Identity number 720105 5637 08 2
and
CYNTHIA ELS
Identity number 821212 0012 08 8
married in community of property to each other
to
NIGELLA LAWSON
Identity number 690919 0356 08 7
unmarried
of the following property namely-
A unit consisting of -
a) Section No. 14 as shown and more fully described on Sectional Plan No. SS
46/2014 in the scheme known as SUNSET MEWS in respect of the land and
building or buildings situated at the TOWNSHIP OF HATFIELD, City of
Tshwane Metropolitan Municipality, of which section the floor area
according to the said sectional plan is 175 (one seven five) square metres in
extent; and

b) an undivided share in the common property in the scheme apportioned to the


said section in accordance with the participation quota as endorsed on the
said sectional plan.
HELD by virtue of Certificate of Registered Sectional Title ST46/2014 (14) (UNIT).

together with Exclusive use areas Garage G14, Garden Area GG 14 and Parking
Bay P14

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2

1 The body corporate has not yet been established and therefore no moneys
are payable to such body corporate.13

2.1 A real right of extension of a scheme, as contemplated in section 25, has


been registered in favour of the developer;

2.2 such right was not disclosed to the transferee in the deed of alienation; but

2.3 the transferee has given written notice, in terms of section 25(15), that he
does not intend to annul the alienation of land for reason of this defect.

Signed at Pretoria on 10 September 2014

CONVEYANCER
Gabriël Jacobus le Roux [8]

5.2 Sequence of transactions that will be lodged simultaneously 14


1 ST: Els/Lawson - (transfer of unit 14)
2 SK: Els/Lawson - (cession of exclusive use areas Garage G14,
Garden Area GG 14 and Parking Bay P14)
3 SBC: Els/Development Bank - (consent by mortgagee to release of
unit 14 and the three exclusive use areas from the operation of the
bond)
4 SB: Lawson/Nedbank (new bond registration by Lawson in favour of
Nedbank) [2]

13
As the question does not indicate whether this is the first transfer in the
scheme or not (in other words whether the body corporate has been
established or not) this paragraph could also have read:
“1 The body corporate has certified that as at date of registration all
moneys due to the body corporate by the transferor in respect of the
said unit have been paid.”
14
In the Cape Town deeds registry the sequence is first the release (cover 3),
thne cover 1 , 2 and 4.

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Question 6 - Model answer 15 [20]

6.1.1 AND the appearer declared that -

WHEREAS in terms of the will dated 31 March 2010 and signed at Ixopo of
the late Eugene Basson, who died on 12 May 2013, he bequeathed his
entitre estate to his surviving spouse, Anna Basson to whom he was married
out of community of property subject to a fideicommissum in favour of their
son Andre Basson 16

NOW THEREFORE the said appearer, in his capacity aforesaid, did, by


these presents, cede and transfer to and on behalf of
ANNA BASSON
Identity number 501231 0356 08 7
widow
her heirs, executors, administrators or assigns [4]

6.1.2 AND the appearer declared that -


WHEREAS the said Anna Basson has renounced her fiduciary right title and
interest in and to the undermentioned property in favour of the
undermentioned fideicommissary;

AND WHEREAS the undermentioned transferee is entitled to the


undermentioned property as the only fideicommissary heir in terms of the will
of the late Andre Basson dated 31 March 2010, subject to the exclusion of
the community of property as more fully set out hereunder;

NOW THEREFORE the appearer, in his capacity aforesaid, did, by these


presents, cede and transfer to and on behalf of -

15
A similar question was asked in May 2011 (Part 1), question 2 and also in
September 2007 (Part 1), question 3 and May 1995 (Part 1), question 2.
16
No reference must be made to the exclusion of the community of property
as provided in the will as the examiners want to test whether you are aware
that the community of property is excluded in respect of a fiduciary on
grounds of common law.

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ANDRE BASSON
Identity number 700101 5247 08 7
married in community of property to Mary Basson, with the exclusion of the
community of property from the undermentioned property as a result of the
stipulations contained in the will of the late Eugene Basson dated 31 March
2010 [4]

6.2.1 First transferred and still held by Deed of Transfer T1483/1985 with diagram
SG No A245/1974 annexed thereto [4]

6.2.2 First transferred by Deed of Transfer T1483/1985 with diagram SG No


A245/1974 annexed thereto and held by Deed of Transfer T3698/201317 [4]

6.3 No. Both transfers are exempt from the payment of transfer duty in terms of
section 9(1)(e) of the Transfer Duty Act, as being inheritances. [2]

6.4 Although the power of attorney in respect of the first transfer will not contain
an endorsement in terms of section 42(2) of the Administration of Estates
Act, a conveyancer certificate in terms of section 42(1) must be lodged. No
endorsement or certificate is required in respect of the second transfer, as
transfer is not effected by the executor (the fiduciary is not deceased). [2]

6.5 Documents to be lodged at the deeds registry iro 6.1.1


1 Existing title deed T 1483/1985
2 power of attorney to pass transfer
3 transfer duty exemption certificate
4 rates clearance certificate
5 copy of the will, certified by the Master and endorsed as accepted by
him
6 section 42(1) conveyancer certificate

17
This number has been made up as the existing title deed number whereby
Anna Basson held the property was not disclosed in the question.

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Question 7 - Model answer [65]

7.1 I would draft an application in terms of section 15B(1)(d) of the Sectional


Titles Act, read together with section 68(1) of the Deeds Registries Act, to be
signed by Siphiso Nxumalo and Dudu Zuma (the registered owners of the
unit), in terms whereof they apply for the noting of the lapse of the these two
conditions (usufruct and tie condition), as both are personal servitudes in
favour of Nonaindia Nxumalo, who has died. A personal servitude which
lapses upon the death of the holder thereof. I would lodge the following
documents in a coloured lodgement cover and link it as number 1 of the
batch:
< Existing title deeds for units 26 and 27 to receive the endorsements
regarding the lapse of the two servitudes
< application referred to above
< Notarial Tie agreement SK12/2004
< proof of the lapse (death certificate or death notice of Nonaindia
Nxumalo and consent of excutor that unit 26 may be seperately
transferred)
It is not necessary to lodge a transfer duty receipt or exemption certificate, as
both servitudes have served their time.

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7.2 Prepared by me

CONVEYANCER
Erinda Frantzen

Application in terms of Section 15B(1)(d) of the Sectional Titles


Act 95 of 1986, read together with Section 68(1) of the Deeds
Registries Act 47 of 1937

We, the undersigned

SIPHISO NXUMALO
Identity Number 640421 5010 08 6
and
DUDU ZUMA
Identity number 660329 0129 08 4
married in community of property to each other

do hereby apply in terms of Section 15B(1)(d) of the Sectional Titles Act 95 of


1986, read together with section 68(1) of the Deeds Registries Act 47 of 1937 to
the Registrar of Deeds at Pretoria, for the endorsement of the Deed of Transfer
ST123/2004 in respect of -

A unit consisting of -
a) Section No. 26 as shown and more fully described on Sectional Plan No. SS
102/1982 in the scheme known as ATHOLLBANK in respect of the land and
building or buildings situated at the ATHOLL GARDENS TOWNSHIP, in the
area of CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY, of
which section the floor area according to the said sectional plan is 210 (two
hundred and ten) square metres in extent; and

b) an undivided share in the common property in the scheme apportioned to the


said section in accordance with the participation quota as endorsed on the
said sectional plan.

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2

As registered owners of the abovementioned property and in respect of the death


of the usufructuary and holder of notarial tie condition, Nonaindia Nxumalo on 23
July 2010 we hereby apply for an endorsement on the abovementioned deed
of transfer to the effect that:
1 the personal servitude of usufruct, held under abovementioned deed of
transfer; and
2 the notarial tie agreement SK12/2004 of units 26 and 27 in the scheme
ATHOLLBANK
have lapsed.

Signed at Pretoria on 10 May 2014.

S Nxumalo D Zuma

7.3 MEMORANDUM
PROCEDURE TO BE FOLLOWED FOR THE REGISTRATION OF AMENDING
SECTIONAL PLAN OF EXTENSION SG D299/2009 OF SECTION 26 IN THE
SCHEME KNOWN AS ATHOLLBANK

TO: SIPHISO NXUMALO


DIRK STORM

DATE: 10 SEPTEMBER 2014

MEMORANDUM PREPARED BY: ERINDA FRANTZEN

1 Section 24 of the Sectional Titles Act deals with the extension of a section.

2 The extension of a section must be approved by a special resolution of the


body corporate. This resolution has already been taken as the sectional
plans would not have been approved without the submission of such

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resolution to the Surveyor-General. We do, however, need a certified copy
of the resolution for record purposes. Kindly provide us with the contact
details of AP Marshall for this purpose.

3 A sectional plan of extension, which must contain a block plan in this


instance, must be drafted by a land surveyor or architect and be approved by
the Surveyor-General. The copy of the plan provided to us does include a
block plan and it has already been approved by the Surveyor General. We
need two registration copies thereof for lodgement in the deeds office.
Kindly let us know if you are not in possession thereof in order for us to make
the necessary arrangement for acquiring same.

4 We also need the original title deed for unit 26. It should be in possession of
Mr Nxumalo, as it appears that there is no bond endorsement attached to the
title deed.

5 We need to obtain a certificate from a land surveyor or architect setting out


the percentage deviation in the participation quota of section 26 as a result of
the extension.

6 If the percentage deviation is more than 10% you have to comply with
section 24(6A) of the Sectional Titles Act. Section 24(6A) requires the
following:
6.1 The applicant for the registration of the sectional plan of extension
(Sihipso Nxumalo and Dudu Zuma) must send a notice per registered
post to every mortgagee in the scheme. There are specific particulars
that need to be addressed in these notices. We shall be in a position
to assist with the drafting and sending of these notices on your behalf.
6.2 The identity of all the mortgagees will therefore have to be
ascertained.
6.3 If we do not receive any reaction to the notices within 30 days after the
date upon which the notice has been sent per registered post, it will be
deemed that the mortgagee has no objection to the proposed
extension and that the mortgagee consents thereto.
6.4 If there are mortgagees that object, this might delay the process as
their objections need to be attended to.

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7 As the extension has been built over common property, the extension
qualifies as a transaction in respect of property as defined in the Transfer
Duty Act and we will have to obtain a transfer duty receipt or exemption
certificate. For this purpose we need confirmation of any amount that you
possibly had to pay to the body corporate as consideration for the granting of
their approval to the extension.

8 An application for the registration of the amending sectional plan of extension


must be signed by Siphiso Nxumalo and his wife Dudu Zuma.

9 We require the original divorce order in respect of the former marriage


between Mr Siphiso Nxumalo and Margareth Nxumalo to ensure that unit 26
was awarded to Mr Siphiso Nxumalo upon divorce and that Margareth does
not have any claim to the property. If you cannot provide us with the original,
we will have to obtain a certified copy from the High Court. For that purpose
we need to know at which court you were divorced.

10 The documents to be lodged in the deeds office are:


i) two registration copies of the amending sectional plan of extension
SG D299/2009, which must include the blockplan;
ii) application (drafted in accordance with prescribed form O) for the
registration of the amending sectional plan of extension.
iii) the divorce court order in the case between Siphiso Nxumalo and
Margareth Nxumalo (either the original or a copy certified by the
registrar of the high court, or a conveyancer or a notary)
iv) original title deed ST123/2004 for section 26
v) certificate by the land surveyor or architect confirming that the
percentage deviation in the participation quota of the section to be
extended does not exceed 10% or if it does exceed 10% a certificate
by a conveyancer confirming that the mortgagee of every unit in the
scheme has consented to the registration of the sectional plan of
extension of section 26.
vi) transfer duty receipt or exemption certificate. [15]

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Prepared by me

CONVEYANCER
Erinda Frantzen
FORM O
Application under section 24(1) 18
of the Sectional Titles Act, 1986

We, the undersigned


SIPHISO NXUMALO
Identity Number 640421 5010 08 6
and
DUDU ZUMA
Identity number 660329 0129 08 4
married in community of property to each other

do hereby apply to the Registrar of Deeds at Pretoria for:

1 The registration of the attached (amending) sectional plan of extension of a


section (S.G. D299/2009) in terms of the provisions of section 24(6) of the
Sectional Titles Act, 1986, in respect of section number 26 as shown and
more fully described on sectional plan no. SS102/1982 19 in the scheme
known as ATHOLLBANK in respect of the land and building or buildings
situate at ATHOLL GARDENS TOWNSHIP, Local Authority: CITY OF
JOHANNESBURG METROPOLITAN MUNICIPALITY and held under Deed
of Transfer ST123/2004.

Signed at Pretoria on 10 May 2014

S Nxumalo D Zuma [15]

18
Form O to the Sectional Titles Act is used.
19
Reference must here be made to the sectional plan on which section 26 is indicated before
the extension is registered.

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7.5 Prepared by me

CONVEYANCER
Erinda Frantzen
Power of Attorney
We, the undersigned
SIPHISO NXUMALO
Identity Number 640421 5010 08 6
and
DUDU ZUMA
Identity number 660329 0129 08 4
married in community of property to each other

do hereby nominate, constitute and appoint Erinda Frantzen and/or Gabriël


Jacobus le Roux with power of substitution to be my true and lawful agent and to
appear before the Registrar of Deeds at Pretoria and then and there as my act and
deed to declare that -

Siphiso Nxumalo did, with the written consent of Dudu Zuma, on 10 July 2010 sell
the undermentioned property for an amount of R900 000,00 (nine hundred
thousand rand) to the undermentioned transferee
DIRK STORM
Identity number 721201 5058 08 7
unmarried

and the property being : A unit consisting of -


a) Section No. 26 as shown and more fully described on Sectional Plan No. SS
123/2014 20 in the scheme known as ATHOLLBANK in respect of the land
and building or buildings situated at ATHOLL GARDENS TOWNSHIP, CITY
OF JOHANNESBURG METROPOLITAN MUNICIPALITY, of which section
the floor area according to the said sectional plan is 278 (two hundred and
seventy eight) 21 square metres in extent; and

20
As soon as the amending sectional plan of extension of a section has been
registered, Registrar of Deeds will allocate a new SS number to such plan. In
subsequent dealings with the extended section reference must be made to
this new SS number. As the new SS number was not provided in the
question, a new SS number has been made up.
21
The larger extent of the extended section 26 can be found on sheet 5, the
participation quota sheet of Sectional Plan SG D299/2009.

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2

b) an undivided share in the common property in the scheme apportioned to the


said section in accordance with the participation quota as endorsed on the
said sectional plan.

Held by Deed of Transfer ST123/2004 22

and further to cede and transfer the said property to the said transferee.

Signed at Pretoria on 10 September 2014

Witnesses:
1
S Nxumalo
2
D Zuma [15]
Question 8 - Model answer [25]

8.1 The title deed in terms whereof Unit 5 in the scheme Omygosh is held must
first be rectified in terms of section 4(1)(b) of the Deeds Registries Act to
indicate Ebrahim Vally and his spouse Priscilla as being married in
community of property. Thereafter an application must be brought by both
spouses in terms of section 45bis(1A)(b) of the Deeds Registries Act in terms
whereof the property is allocated to each spouse in equal one half shares.23
[5]

22
The existing title deed (ST123/2004) was endorsed regarding the extension
of section 26. A new deed of transfer or other deed is therefore not drafted
and registered when a section is extended.
23
Registrars’ Conference Resolution 32/2005. Question 8.1 was also tested in
May 2009 (part 2), question 5 for 4 marks.

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8.2 Prepared by me

CONVEYANCER
Gabriël Jacobus le Roux
Application and affidavit in terms of
Section 4(1)(b) of the Deeds Registries Act 47 of 1937

I, the undersigned
1 EBRAHIM VALLY
Identity number: 581011 5003 08 2
married out of community of property
do hereby make oath and say:
1 That I was married in community of property to Priscilla Vally at the time
when the property held by Deed of Transfer ST4569/2010 was registered
into my name.

2 That I was incorrectly described in the said Deed of Transfer as married out
of community of property.

3 That there are no other deeds or documents registered in the deeds registry
at Pretoria in which marital status us was incorrectly reflected.

4 That the required amendment will not have the effect of transferring any
rights.

5 That I do hereby apply to the Registrar of Deeds at Pretoria that the error be
rectified so that the transferee in the vesting clause is described as follows in
the said Deed of Transfer:
Ebrahim Vally
Identity number: 581011 5003 08 2 and
Priscilla Vally
Identity number: 681215 0036 08 2
married in community of property to each other

E Vally
I certify that the deponents have acknowledged that they know and understand the
contents of this affidavit which was signed and sworn to before me at Pretoria on
10 September 2014.

COMMISSIONER OF OATHS

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8.2 (continue) Prepared by me

CONVEYANCER
Gabriël Jacobus le Roux
Application in terms of Section 45bis(1A)
of the Deeds Registries Act 47 of 1937

We, the undersigned

1 Ebrahim Vally
Identity number: 581011 5003 08 2
married out of community of property

2 Priscilla Vally
Identity number: 681215 0036 08 2
married out of community of property

do hereby apply in terms of section 45bis(1A) of the Deeds Registries Act 47 of


1937 to the Registrar of Deeds at Pretoria, for the endorsement of the Deed of
Transfer ST4569/2010 in respect of

A unit consisting of - 24
a) Section No. 5 as shown and more fully described on Sectional Plan No. SS
753/2008 in the scheme known as OMYGOSH in respect of the land and
building or buildings situated at CENTURION TOWNSHIP, CITY OF
TSHWANE METROPOLITAN MUNICIPALITY, of which section the floor
area according to the said sectional plan is 295 (two hundred and ninety
five) square metres in extent; and

b) an undivided share in the common property in the scheme apportioned to the


said section in accordance with the participation quota as endorsed on the
said sectional plan.

24
The prescribed form for this description can be found in paragraph 1 of Form
H issued under the Sectional Titles Act.

Part 1 - 10 September 2014 Self-Study Deeds Course CC Page 20


2

Whereas our marital status was changed from in community of property to out of
community of property by a court order issued by the High Court of South Africa
Gauteng Division, Pretoria dated 15 May 2014 in terms of section 21 of the
Matrimonial Property Act, 88 of 1984, and the property was awarded to both of
us in equal shares, we hereby apply that an endorsement be made on the
above-mentioned title deed to the effect that each one of us is entitled to deal
with his or her one-half a share of the above-mentioned property as if each of
us had received formal transfer thereof.

We declare that the value of the herein mentioned property is R1 200 000,00 (one
million two hundred thousand rand).

Signed at Pretoria on this 10th day of September 2014.

E Vally P Vally [20]

Question 9 - Model answer [30]

9.1 I will draft the necessary documents for the registration of a collateral bond
over Unit 9, passed by the same mortgagor (ABC (Pty) Ltd) than in the
principal bond (that is already registered for R10m) in favour of the same
mortgagee than in principal bond (Vatso Bank) in respect of the same cause
of debt than in the principal bond (loan) over other property of the
mortgagor(Unit 9 in the scheme Nouja) as additional security.

Although section 112 of the Companies Act 71 of 2008 requires a special


resolution of the shareholders of the disposing company where the greater
part of its assets are disposed, mortgaging does not fall under the
requirement of “disposal” and therefore a special resolution by shareholders
is not necessary.25

25
In Standard Bank of South Africa Ltd v Hunkydory Investments 188 (Pty) Ltd
the court held that dispose means a disposal in the form of a transfer of
ownership rather than a transaction that exposes the company’s assets to
the risk of forced disposal because of borrowing.

Part 1 - 10 September 2014 Self-Study Deeds Course CC Page 21


9.2 Prepared by me,

CONVEYANCER
Erinda Frantzen
Power of Attorney
I, the undersigned,
Mark Wilhelm in my capacity as director and duly authorised thereto by virtue of
a resolution of
ABC (PTY) LTD
Registration number 1990/369547/07

do hereby declare that I have this day signed and executed a Collateral Sectional
Mortgage Bond in favour of VATSO BANK LIMITED, Registration number
1960/004586/06, its order, successors or assigns (hereinafter referred to as the
mortgagee) for the sum of R10 000 000,00 (ten million rand), together with the sum
of R2 000 0000,00 (two million rand) and specially hypothecating as a First
mortgage subject to the conditions set out in an annexure to the said bond -

A unit consisting of -
a) Section 9 as shown and more fully described on sectional plan no. SS111/2009
in the scheme known as NOUJA in respect of the land and building or buildings
situated at SANDTON TOWNSHIP, local authority CITY OF
JOHANNESBURG METROPOLITAN MUNICIPALITY, of which section the
floor area according to the said sectional plan is 1 750 (on thousand seven
hundred and fifty) square metres in extent; and

b) an undivided share in the common property in the scheme apportioned to the


said section in accordance with the participation quota as endorsed on the said
sectional plan.
Held by Deed of Transfer ST22/2010

Subject to all the terms and conditions contained in the aforesaid Deed of Transfer

and I do hereby nominate, constitute and appoint


OLIVIA GROENEWALD
with power of substitution to be my agent and to appear before any Conveyancer
practising as such in the Republic of South Africa and then and there as my act and
deed to sign and execute a bond corresponding with the draft bond and to make and
authenticate all such alterations, additions and/or deletions in and to the bond as may
be necessary for the registration thereof;26

26
You could have omitted this paragraph if the mortgagor personally appeared
before the conveyancer.

Part 1 - 10 September 2014 Self-Study Deeds Course CC Page 22


2

and I do hereby nominate, appoint and confer authority upon


GABRIëL JACOBUS LE ROUX 27
to be my attorney, conveyancer and agent to act in respect of the said transaction
and procure registration of the said sectional mortgage bond and furthermore as
my act and deed to make and authenticate all such alterations, additions and/or
deletions in and to the said bond as may be necessary for the purpose of
registration thereof

and generally to so whatsoever may be necessary to make the said bond valid and
effectual as I could do if personally present, hereby ratifying all and whatsoever the
said attorney, conveyancer and agent shall lawfully do or cause to be done by
virtue of these presents.

Signed at Johannesburg on 10 September 2014 .

As Witnesses:
1

2
M Wilhelm obo ABC (Pty) Ltd

27
Although it is not required for a conveyancer (or the mortgagor himself) to
appear before the registrar of deeds and pass the bond, the sectional bond
must still be registered in the deeds office and a conveyancer therefore
needs authority for such registration on behalf of the mortgagor.

Part 1 - 10 September 2014 Self-Study Deeds Course CC Page 23


Prepared by me
Form AJ
CONVEYANCER
Erinda Frantzen

Collateral Sectional Mortgage Bond

I, the undersigned
OLIVIA GROENEWALD
duly authorised thereto by virtue of a Power of Attorney signed at Johannesburg on 10
September 2014 and granted to me by 28

Mark Wilhelm in his capacity as director and duly authorised thereto by virtue of a
resolution of
ABC (PTY) LTD
Registration number 1990/369547/07 29
(Hereinafter referred to as the mortgagor),

28
You could have let the mortgagor personally appear before the conveyancer
and then this paragraph would have been omitted.
29
As the power of attorney is not lodged in the deeds office, the full names
and authority of the person acting on behalf of the mortgagor must be
inserted here.

Part 1 - 10 September 2014 Self-Study Deeds Course CC Page 24


2

do hereby acknowledge myself to be lawfully indebted and bound to


VATSO BANK LIMITED
Registration number 1960/004586/06
its successors in title or assigns
(Hereinafter referred to as the mortgagee)

in the sum of R10 000 000,00 (ten one million rand), arising from and being for
money lent and advanced as security for which indebtedness mortgage bond
B123/2012 (hereinafter called the principal bond) was registered in the Deeds
Registry at Bloemfontein on the 6th of October 2012 over the property thereby
specially hypothecated;

And whereas the said mortgagee requires the indebtedness of the mortgagor under
the principal bond to be further secured by the hypothecation of the
undermentioned property as collateral security therefor;

Now therefore, I, renouncing all benefits arising from the legal exceptions non
numeratae pecunia, non causa debiti, revision of accounts, errore calculi and no
value received 30 (in so far has the renunciation thereof is not prohibited by the
National Credit Act), with the full force and effect of which I declare myself to be
fully acquainted, do by these presents declare and acknowledge the company to be
held and firmly bound unto and on behalf of the said mortgagee, its order or
assigns in the aforesaid sum of R10 000 000,00 (ten million rand) together with the
sum of R2 000 000,00 (two million rand) as a preferent charge for costs and other
matters as more fully set out in the principal bond, and as collateral security for the
due and property repayment of the aforesaid sums with interest on the said capital
sum and for the due and proper fulfilment of all the terms and conditions mentioned
or referred to in the principal bond as well as all my obligations thereunder, I
declare to bind specially as a first mortgage -

A unit consisting of -

30
The same exceptions that have been renounced in the principal bond must
be renounced in the collateral bond. As the cause of debt in the principal
bond is for money lent and advanced the renunciation of the exceptions
above would have been included in the principal bond.

Part 1 - 10 September 2014 Self-Study Deeds Course CC Page 25


3

a) Section 9 as shown and more fully described on sectional plan no.


SS111/2009 in the scheme known as NOUJA in respect of the land and
building or buildings situated at SANDTON TOWNSHIP, local authority
CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY, of which
section the floor area according to the said sectional plan is 1 750 (on
thousand seven hundred and fifty) square metres in extent; and

b) an undivided share in the common property in the scheme apportioned to the


said section in accordance with the participation quota as endorsed on the
said sectional plan.
Held by Deed of Transfer ST22/2010 and subject to such conditions as set out in
the aforesaid deed of transfer

Signed at Johannesburg on 11 September 2014

Mortgagor or his duly authorised agent


Before me, Conveyancer

Registered at Johannesburg on
Seal of Office Registrar of Deeds

Part 1 - 10 September 2014 Self-Study Deeds Course CC Page 26


ANNEXURE

I, the undersigned

Mark Wilhelm in my capacity as director and duly authorised thereto by virtue of a


resolution of
ABC (PTY) LTD
Registration number 1990/369547/07
(hereinafter referred to as the mortgagor), further declared that the Collateral
Sectional Mortgage Bond to which this annexure is attached shall be subject to the
following terms and conditions

1 This collateral bond shall be subject to all the terms and conditions set out in
the principal bond as fully and effectually as if the same had been inserted
herein and to the special condition that upon payment and discharge of all
obligations secured under the principal bond, this collateral bond shall be null
and void abut shall otherwise be and remain of full force and effect.

2 The mortgagee is irrevocably appointed in rem suam to act on behalf of the


mortgagor in matters affecting the unit and the mortgagor’s relationship with
the body corporate and the sectional title owners;

3 The mortgagee shall be authorised to attend general meetings and vote on


behalf of the mortgagor;

4 The mortgagee shall be entitled to all notices and other information in


possession of the body corporate which is relevant to his/her security.

Mortgagor or his duly authorised agent


Before me, Conveyancer

[25]

TOTAL: [200]

Part 1 - 10 September 2014 Self-Study Deeds Course CC Page 27


Model Answers to the Conveyancing Examination

September 2014
Part 2
Self-Study Deeds Course

Question 1 - Model answer 31 [4]

1 In respect of the signed consent to cancellation


In a Registrars’ Conference Resolution 32 it was resolved that the consent to
cancellation may be utilized even after the death of the person who gave the
consent, provided the estate duty clearance is provided. If a duly appointed
agent signed the consent before the mortgagee’s death, the consent is also
acceptable. The debtor under the bond has already performed by repayment
and the consent signed by X during his liftime remains valid.

2 In respect of the signed power of attorney


In this instance the power of attorney is automatically revoked and the
conveyancer will not be able to use the power of attorney to pass transfer.
The death of X terminates the agency and a new power of attorney must be
obtained from the executor of the deceased’s estate once the letters of
executorship have been issued. When documentation has already been
lodged at the deeds registry, it must be withdrawn before registration is
executed and be lodged again after a new power of attorney has been
obtained.

Question 2 - Model answer [3]

If a fiduciary interest in land terminates before transfer of the land has been
registered in favour of the fiduciary, it shall be competent to transfer the land
directly to the fideicommissary - section 14(1)(b)(vi) of the Deeds Registries Act.
The property may therefore be transferred by the executor in the estate of the late
X directly to the grandson, Z (fideicommissary).

31
Also asked in Question 10 (Part 2) September 2005 for 4 marks.
32
32/1965.

Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 28


Question 3 - Model answer [28]

3.1 And the said appearer declared that

WHEREAS in the matter in which XYX (Pty) Ltd Limited was the plaintiff and
Jo Brown, Identity Number 690306 5032 081, was the defendant and by
virtue of a writ issued by the High Court of South Africa (North Gauteng
Division) on 2 January 2011 at Pretoria under case number 301/2010, the
undermentioned property was attached by the sheriff;

AND WHEREAS the hereinafter mentioned property, registered in the name


of the said Jo Brown, was thereafter sold by the sheriff by public auction on 3
April 2011 [5]

3.2 And the appearer declared that the said late Jo Brown, during his lifetime
had truly and legally sold the undermentioned property on 3 April 2011 [3]

3.3 And the appearer declared that his principal had truly and legally donated the
undermentioned property on 15 May 2014 [4]

3.4 And the appearer declared that -

WHEREAS, in terms of the joint will, dated 10 April 2009 of the late Jo
Brown, who died on 15 January 2014 and his surviving spouse Alice Brown
to whom she was married in community of property, the testators massed
their estates and the undermentioned property was specifically bequeathed
to their son, James Brown, subject to a usufruct in favour of the surviving
spouse and further subject to the exclusion of the community of property as
more fully set out hereunder;

AND WHEREAS the surviving spouse has adiated the terms of the will;

Now therefore the appearer in his capacity aforesaid hereby cedes and
transfers to and on behalf of [8]

3.5 And the appearer declared that -

Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 29


WHEREAS the undermentioned transferee bought the undermentioned
property in terms of a deed of sale dated 4 January 2011, but in error
received transfer Erf 14 Hatfield Township by Deed of Transfer T10/2012

AND WHEREAS I purchased Erf 14 Hatfield Township in terms of a deed of


sale dated 4 January 2011, but in error received transfer of Erf 15 Hatfield
Township by Deed of Transfer T11/2012

AND WHEREAS I and the undermentioned transferee have agreed to rectify


the position and in consequence of such agreement, I am simultaneously
herewith receiving transfer from the undermentioned transferee of the said
Erf 14 Hatfield Township

NOW THEREFORE I hereby authorise the appearer to transfer to... [8]

Question 4 - Model answer [4]

4.1 A deed of alienation in which a real right of extension has not been disclosed
shall be voidable at the option of the purchaser. After notice by the
purchaser to the seller that he annuls the alienation, the alienation shall be
void - section 25(15). [2]

4.2 I would inform John Smith of the real right of extension, provide him with the
necessary particulars thereof and inform him of his rights as discussed in 4.1
in order for him to decide whether he wants to continue with the transaction.
If he wishes to proceed with the transaction, I will draw a written notice for
him to sign wherein he confirms that he does not intend to annul the
alienation for reason of the non-disclosure of the real right of extension. [2]

Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 30


Question 5 - Model answer [2]

Section 80 of the Administration of Estates Act only requires the consent from the
Master or the High Court if a minor intends to alienate or encumber any immovable
property. It does not require such consent when a bond that is registered in favour
of a minor must be cancelled as no alienation of immovable property is taking
place.33 In Ex Parte MacRobert NO it was decided that it is unnecessary for a
guardian to obtain the court’s approval for the cancellation of a bond that is
registered in favour of a minor. The minor must, however, still be assisted by his
parent or guardian in the execution of the required consent. It is not necessary for
both parents or all the guardians to consent, the consent of 1 is sufficient.

Question 6 - Model answer [6]

6.1 No, he may not, if it is a long term lease that is to be registered in the deeds
registry. According to section 15(2)(a) of the Matrimonial Property Act the
consent of the other spouse is required if immovable property is to be
alienated. A registered long term lease is defined in the Deeds Registries
Act as “immovable property”. A lease will further boil down to an alienation.
If the lease is, however, a short term lease this will not boil down to the
conferring of a real right in immovable property under section 15(2) , but only
a personal right and the consent of the John’s spouse will not be required. [2]

6.2 As the underhand surety by John Brown is not given in the ordinary course of
his business, the written consent by Sue Brown to such underhand surety,
attested by two competent witnesses is required, which consent may not be
given by way of ratification.

With regard to the mortgaging of Erf 1234 Hillside as security for the surety,
the written consent by Sue Brown, attested by two witnesses is also required,
as this constitutes the mortgaging of immovable property as referred to in
section 15(2) (a) of the Matrimonial Property Act, which consent may not be
given by way of ratification. [2]

6.3 Yes. Section 15(9) of the Matrimonial Property Act provides that when a
spouse enters into a transaction for which the consent of the other spouse

33
Registrars’ Conference Resolution 25/1980.

Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 31


was required it is deemed that the transaction has been entered into with the
necessary consent if the other transacting party does not know and cannot
reasonably know that the transaction is being entered into contrary to the
provisions of section 15(2) or 15(3). [2]

Question 7 - Model answer [3]

1 The incorrect spelling of his name can be rectified by drafting an application


and affidavit in terms of section 4(1)(b) of the Deeds Registries Act for an
endorsement, for signature by my client and lodgement in the deeds office.

2 The interest rate may be amended by an agreement in terms of section


3(1)(s) of the Deeds Registries Act, to be signed by both the mortgagor and
the mortgagee, for lodgement in the deeds registry.
3 The capital amount of the bond may not be amended by a section 3(1)(s) of
the Deeds Registries Act agreement. The capital amount of the bond may
be reduced by the noting of a part payment or the reduction of cover. In this
instance, however, where the capital amount must be increased, the bond
will have to be cancelled and a new bond (substitutive bond) for the correct
amount must be registered.

Question 8 - Model answer [6]

When a property is sold to a person acting as an agent of someone else (John


Smith or nominee), the agent (John Smith) must disclose to the seller the name
and address of the principal on whose behalf he is acting and give the seller a copy
of the documents appointing him as agent. This must be done on the same day as
the day on which the contract of purchase and sale has been concluded or, in the
case of an auction, on the same day as the day on which the auctioneer accepted
the purchaser’s bid - (section 16 of the Transfer Duty Act). If this is not done by the
agent (John Smith) it shall, for purposes of the payment of transfer duty, be
presumed, unless the contrary is proved to have been acquired by the agent (John
Smith) himself. The effect of this section is that if a person cannot disclose the
name of the nominee on the same day, but does so later, the purchase will be
regarded as two separate transactions for transfer duty purposes. In other words,
the first purchaser (John Smith) will have to pay transfer duties on the purchase
price and the nominee will also have to pay transfer duties on the purchase price.

Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 32


Question 9 - Model answer [5]

The provisio to section 76(1) provides for the registration of an unregistered


praedial servitude in the power of attorney to pass transfer from A to B. It is
therefore not necessary to create the servitude notarially which would result in the
saving of costs. The procedure to achieve this is as follows:
1 The seller (A) must acknowledge the existence of the unregistered servitude
by disclosing the existence thereof in the deed of sale and then incorporating
it into the power of attorney. A separate acknowledgement by A is not
required. His signature on the power of attorney is sufficient.

2 B (purchaser) must consent in writing to the incorporation of the servitude


into the deed of transfer. He may give his consent on the power of attorney
or on a separate consent in which the servitude is described.
3 C must accept the servitude in favour of his land. He does this by appointing
a conveyancer under a power of attorney to appear before the Registrar on
his behalf on the day of registration of the deed of transfer and accept the
servitude in favour of his land. This power of attorney would therefore be a
second, separate power of attorney in the set.

Question 10 - Model answer [3]

Joan Jillson
Identity number 420916 3043 08 7
formerly unmarried
(now married out of community of property)

Question 11 - Model answer [3]

Jo Jackson
Identity number 440919 5096 08 2
(now deceased)
and
Jill Jackson
Identity number 501001 0057 08 7
(formerly married in community of property to each other)

Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 33


Question 12 - Model answer [10]

The Housing Consumer ‘s Protection Measures Act is applicable to any home


builder.34 Cool Ideas is a home builder” as defined in the sadi Act as being a
person who carries on the business of a home builder. “Business of a home
builder” is defined as to include to cause a home to be constructed for any person.
According to section 10 no person may carry on the business of a home builder or
receive any consideration from a contract for the construction of a house, unless he
is registered at the NHBRC. Not only the home builder that does the construction
work must be registered but also the home builder that enters into an agreement
with other home builders to construct homes.35 If a home builder is not thus
registered and carries on the business of a home builder or receives consideration,
he shall be guilty of an offence and punishable with a fine and/or imprisonment.

As Cool Ideas is not registered as a home builder, it is not entitled to carry on the
business of a home builder nor to receive any consideration therefor and the
members make themselves guilty of an offence. Cool Ideas was therefore not
entitled to receive any consideration and is also not entitled to the outstanding
consideration payable. I will therefore advise Cool Ideas to immediately register as
a home builder.

Section 13 of the Housing Consumer’s Protections Measures Act provides that an


agreement between a home builder and a housing consumer shall be deemed to
include warranties enforceable by the housing consumer against the home builder
in any court which include -
a) that the home -
i) shall be constructed in a workmanlike manner;
ii) shall be fit for habitation
iii) shall be constructed in accordance with -
aa) the NHBRC Technical Requirements to the extent applicable to
the home at the date of enrolment of the home with the Council;
bb) the terms, plans, specifications of the agreement concluded with
the housing consumer

b) the home builder shall -

34
Section 1A.
35
Section 10(6)(b).

Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 34


i) at the cost of the home builder and upon demand by the housing
consumer rectify major structural defects in the home caused by the
non-compliance with the NHBRC Technical Requirements and
occurring within the period as set out in the agreement and which shall
not be less than 5 years as from the date of occupation, and notified to
the home builder by the housing consumer within that period;
ii) rectify non-compliance with or deviation from the terms, plans and
specifications of the agreement or any deficiency related to design,
workmanship or material notified to the home builder by the housing
consumer within a period stipulated in the agreement and which shall
not be less than three months as from the occupation date; and
iii) repair roof leaks attributable to workmanship, design or materials
occurring and notified to the home builder by the housing consumer
within a period set out in the agreement and which shall not be less
than 12 months as from the occupation date.

It should be ascertained whether the quality of certain aspects of the building work
in respect of which Ms Hubbard complains has bearing on (b)(i), (ii) or (iii) above
and then whether she gave notice of the defects within the periods as set out
above. If the answer is in the affrimative, Ms Hubbard shall be entitled to enforce
the guarantees against Cool Ideas who will have to rectify the defects at his own
cost. If not, such guarantees have lapsed and she will not be entitled to enforce
same against Cool Ideas.

If Ms Hubbard is entitled to enforce the guarantee, Cool Ideas may in terms of its
contract with Velvori Construction, cailm from Velvori to do the necessary repairs
and rectification or to claim damages from Velvori for its ommission to do the work
as agreed to.

Question 13 - Model answer [11]

13.1 An attorney may not establish a business relationship or conclude a single


transaction with a client unless such attorney has -
a) established and verified the identity of the client;
b) if the client is acting as an agent on behalf of another person, establish
and verify-
i) the identity of that other person ; and
ii) the client’s authority to establish the business relationship or to

Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 35


conclude a single transaction on behalf of that other person; and
c) if another person is acting as an agent on behalf of the client, to
establish and verify -
i) the identity of that other person; and
ii) the other person’s authority to act on behalf of the client. [3]

13.2 Records to be kept are:


a) the identity of the client and any agent acting on behalf of the client;
b) the manner in which the identity was established;
c) the nature of the business relationship or transaction;
d) in the case of a transaction -
i) the amount involved; and
ii) the parties to that transaction;
e) all accounts that are involved in -
i) transactions concluded in the course of that business
relationship; and
ii) that single transaction;
f) all documents or copies of documents obtained by the attorney in
order to verify any person’s identity. [6]

13.3 An attorney must keep records for a period of at least five years from the
date on which the business relationship with a client has been terminated or
from the date on which a transaction has been concluded. [2]

Question 14 - Model answer [6]

1 James Viljoen
Identity number 850210 6396 08 7
unmarried
(½ share)

2 Craig Smith
Identity number 801215 7895 08 8
unmarried
(1/4 share)

3 Jemma Smith
Identity number 831216 0059 08 8

Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 36


unmarried
(1/4 share)

their heirs, executors, administrators or assigns

Question 15 - Model answer [6]

According to section 48(1) a supplier must not -


a) offer to supply, supply or enter into an agreement to supply any goods or
services at a price or on terms that are unfair, unreasonable or unjust;
b) market any goods or services, or negotiate, enter into or administer a
transaction or an agreement for the supply of goods or services in a manner
that is unfair, unreasonable or unjust; or
c) require a consumer, or other person to whom any goods or services are
supplied at the direction of the consumer, to waive any rights, assume any
obligation or waive any liability of the supplier on terms that are unfair,
unreasonable or unjust or impose any such terms as a condition of entering
into a transaction.

According to section 48(2) an agreement, terms, condition or notice shall be unfair


unreasonable or unjust if -
1) it is excessively one-sided and not in the favour of the consumer;
2) it is so adverse to the consumer as to be inequitable;
3) the consumer transacted to his detriment in relying on a false or misleading
statement; or
4) the notice requirements of section 49 (which require pre-notification for
certain types of onerous contract terms such as indemnities, waivers and
exemption) were not complied with.
TOTAL: [100]

Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 37


Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 38
Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 39
Compiled by

Erinda Frantzen
BCom(Law)(UP) LLB (UNISA)
Attorney, Conveyancer and Notary of the High Court of South Africa
and
Gawie le Roux
BA(Law)(UP) LLB (UP) BA Honours (UNISA)
Attorney and Conveyancer of the High Court of South Africa

and published by

Self-Study Deeds Course CC


Registration number 1994/016876/23

PO Box 74047
Lynnwood Ridge
0040

Flinders Lane 451


Lynnwood, Pretoria

Tel: (012) 361-1715


Fax: (012) 361-1108

Web site: www.aktepraktyk.co.za

SOURCES

Self-study Deeds Course for Attorneys


The Consolidated Practice Manuals of the Deeds Office of South Africa
Relevant acts, regulations and prescribed forms

Part 2 - 10 September 2014 Self-Study Deeds Course CC Page 40

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